The Spanish giants were slapped with a two-window penalty for the alleged illegal signing of young players.
But they've now had that sanction reduced.
The Court of Arbitration for Sport (CAS) has changed the penalty to just one transfer window.
That will apply in January, with Real now free to enter the market for new players next summer.
Real's bitter rivals Barcelona were handed a two-window penalty for a similar practice of recruiting young players against Fifa rules.
Their neighbours Atletico Madrid have also been given the same transfer ban, but no announcement has been made about any reduction for Diego Simeone's side.
Real Madrid wrote in a statement: "The Court of Arbitration for Sport (CAS) has today informed Real Madrid C. F. of their decision by which they have partially upheld the appeal lodged by the club against the FIFA resolution which imposed a sanction forbidding the signing of players for two transfer windows, reducing said sanction to just one period, corresponding to the January 2017 transfer window.
"The decision highlights the injustice of the original ban imposed by FIFA, although the club regrets that the CAS lacked the courage to revoke the ruling entirely."
Hala Madrid!!
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